Tories to scrap inheritance tax in ‘one big throw of the dice’

Mr Osborne said pledge to abolish inheritance tax 'is probably coming down the track' - Euan Cherry/Getty Images

The Conservatives will pledge to abolish inheritance tax in “one big throw of the tax dice” to try and save themselves from electoral wipeout, George Osborne has said.

The former chancellor described the proposal to get rid of death duties as a “potent weapon” in the Tories’ arsenal which they are likely to reach for given their standing in the polls.

Mr Osborne told the Political Currency podcast: “I still am waiting for one big throw of the tax dice.

“We haven’t heard from the Tories on tax and I think a pledge to abolish inheritance tax or all but abolish inheritance tax is probably coming down the track.”

The former chancellor himself pledged in 2007 while in opposition to effectively scrap inheritance tax, by raising the threshold to £1 million.

He told the podcast on Tuesday: “Whether it will have the same impact in 2024 I question, but if you’re throwing everything at this election, it seems quite likely you’d reach for that tool in the toolkit.”

It comes after Jeremy Hunt last month described the tax as “profoundly anti-Conservative”, adding that the Tories would end taxes that discourage people from earning more money.

Jeremy Hunt has described the tax as 'profoundly anti-Conservative' - Geoff Pugh for The Telegraph

Asked then whether cutting death duties was a priority, he told The Telegraph: “I hope it’s something that over time a Conservative government would be able to look at.”

Mr Osborne said that he believed that inheritance tax had “a particular purchase in politics way beyond the numbers of people directly affected each year”.

He told the podcast: “Partly because for every estate that pays inheritance tax, there are quite a lot of individuals who benefit from that, different children and grandchildren, and because of rising house prices, lots of people think they’re going to be in the inheritance tax net in the future, so sometimes the numbers are a bit misleading.”

He added: “It also is a much-hated tax, so it’s a very potent weapon for the Conservatives, and I think there will be loads of pressure so try something big.”

However, the former chancellor issued a warning to the Tories that “you can’t fatten the pig on market day”, adding that he was “sceptical” such an announcement given their current standing in the polls would “dramatically change the weather”.

“But I might be, as a Conservative party member, pleasantly surprised,” he added.

Analysis by YouGov released on Tuesday predicted that Labour is on course to win 422 seats in the Commons, beating Sir Tony Blair’s landslide victory in 1997.

It would leave the Tories with just 140 seats, their worst performance since 1906.

The Tories have already unveiled a number of new policy proposals in a bid to woo voters since Rishi Sunak called the snap election less than a fortnight ago.

The Prime Minister has announced his “bold action” plan to introduce national service for 18-year-olds, as well as a “triple lock plus” on pensions and an annual cap on migration.

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